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Treasure sells 272 units on launch weekend
Singapore’s largest condominium Treasure at Tampines moved 272 units at an average S$1,280 per sq ft (psf) over its launch weekend.
That translates to about 12 per cent of the 2,203 units in all, and about 56 per cent of the 490 units developer Sim Lian launched over the weekend.
The performance, which experts deemed as "credible", is likely to be monitored closely by developers of other upcoming mega-launches like Amber Park and Normanton Park.
Adapted from: The Business Times, 25 March 2019
Kuok Group plans mall and 480 apartments on Pasir Ris site
The Allgreen Properties and Kerry Properties tie-up that clinched the 99-year leasehold white site next to Pasir Ris MRT station is planning to develop about 480 apartments above three levels of retail space.
Its winning bid of nearly S$700 million works out to S$684.48 per square foot per plot ratio (psf ppr), based on a total gross floor area of 1.02 million sq ft.
The commercial and residential development will be integrated with a bus interchange, a polyclinic and a town plaza, offering seamless connection to public transport services and amenities for residents. The completed development will also serve as a community focal point.
The dual-envelope concept and price revenue tender for the Pasir Ris Central site closed last Dec 14, attracting three tenderers.
The only other shortlisted tenderer, Far East Organization, bid nearly S$677.78 million, translating to S$662.75 psf ppr.
There was a third bidder that took part in the tender but was not shortlisted; this was a tie-up between Singapore Press Holdings and Kajima Development.
The Allgreen Properties and Kerry Properties tie-up's unit land price based on a lower gross floor area of 832,480 sq ft, excluding the public facilities, works out to S$840.86 psf ppr, a spokesman for Allgreen said when contacted by The Business Times.
Allgreen will hold 70 per cent of the joint venture, and Kerry Properties, the rest. The two companies are part of the Kuok Group of companies controlled by Malaysian tycoon Robert Kuok.
The mall will have three levels - two above ground and a basement. There will also be basement car parking lots for the retail mall.
The residents will have a separate car parking facility on Level 3 of the project; the apartments will be from Levels 4 to 11.
The residential component of about 480 units will comprise one- to four-bedders.
The winning bidder has eight years to complete the development.
HDB adopted a dual-envelope concept and price revenue tender system to shortlist quality development concepts with seamless integration of amenities and well-designed public spaces.
Bidders were required to submit their concept proposals and tender prices in two separate envelopes.
When the tender for the site closed last December, only the envelopes containing the three concept proposals, one from each tenderer, were opened.
All tenderers were given the opportunity to present their proposals to the concept evaluation committee (CEC).
Following evaluation, the CEC decided that two of the three concept proposals - those submitted by Far East Organization and the tie-up between Allgreen Properties and Kerry Properties - had substantially satisfied the evaluation criteria and could proceed to the second stage of tender evaluation.
The price envelopes of the two shortlisted tenderers were then opened and the site awarded to the Allgreen-Kerry partnership, which had submitted the higher bid of the two shortlisted tenderers.
Adapted from: The Business Times, 23 March 2019
ERA Realty launches S$1m grant to attract new talent
The competition for agent acquisition is heating up, with ERA Realty Network launching a programme that will offset a significant portion of a real estate agent's initial fees to kickstart a career in real estate sales.
On Friday, ERA announced a S$1 million startup grant for new real estate salespersons joining the industry. With the grant, new agents joining ERA pay a sum of S$100 for administrative and materials fees, instead of the usual sum of S$1,127. This covers the joining fees of S$563.50 per agent in the first year, comprising an administrative fee (S$53.50), registration fee (S$230), compulsory work kit (S$180) and an additional S$100 subsidy for ERA's compulsory skills-based training that costs S$200. The grant also covers renewal fees for the following year, which will cost ERA S$463.50 per agent.
ERA said in a press release: "Given the global economic uncertainty, this startup grant comes in handy for the weak labour market that has been affected by the fast-paced technological change and companies undergoing reorganisations, mergers and acquisitions this year."
The initiative should be able to benefit up to 973 new agents, although ERA added that it is open to reviewing the grant if more agents want to join.
According to data from the Council for Estate Agencies (CEA), PropNex Realty was the largest agency in Singapore as at Jan 1 2019 with some 7,400 agents, followed by ERA with 6,490 agents and OrangeTee & Tie in third place with 4,056 agents.
Other agencies, such as PropNex and Huttons, also offer subsidies to their agents. For instance, PropNex has been subsidising its training courses for new-to-industry agents since 2015. New agents pay S$150 for the training courses, which can otherwise cost up to S$1,500. PropNex sees about 400-500 new agents each year, and sets aside a budget of S$500,000 per year as training subsidies for new agents, PropNex CEO Ismail Gafoor told The Business Times. In addition, it offers training subsidies to its existing agents, for whom it sets aside a budget of S$1.5 million each year. PropNex currently has some 7,570 agents in total.
Meanwhile, Huttons launched its Real Estate Aspiration Programme (REAP) in 2019 to educate those who are new in the workforce and mid-career professionals who aspire to establish a career in the real estate industry.
Huttons Asia head of research Lee Sze Teck said: "We share with them success stories and what it takes to succeed in this industry. We also offer them a step-by-step guide to start this business. Huttons has set aside up to S$4 million over two years to first retain and to attract other experienced and aspiring salespersons. This will cover their CEA application fees, professional insurance and highly subsidised training fees, among others."
Meanwhile, OrangeTee & Tie has taken a different tack by developing an "Auto-Website" initiative to help new agents save on project marketing costs around new condominium launches as these agents work on building up their client base. Building a website can cost agents S$600-S$800 per project but the initiative allows them to set it up at zero cost to the agent. In addition, OrangeTee & Tie updates the website information automatically.
Steven Tan, managing director of OrangeTee & Tie, said: "We believe in investing in technology to provide innovative solutions for them to kickstart their real estate careers. The Auto-Website initiative not only helps new agents to save money, but also time."
Adapted from: The Business Times, 23 March 2019
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